2018 (3) TMI 1442 - HC - Customs

Seizure of amounts lying to the credit of the petitioner s bank account - Held that - Resultantly, the parties who are involved and allegedly in fraudulent transactions move this Court and complain as in this case that more than two years have lapsed, but, none of the Authorities have set the law in motion. This Court may then be inclined to release the bank account from seizure or an order of freezing the same - petition disposed off.

Summary

Issues:
1. Seizure of amounts in petitioner's bank account by Enforcement Directorate.
2. Proper exercise of power under Section 110 of the Customs Act.
3. Transfer of investigation from Directorate of Revenue Intelligence to Enforcement Directorate.
4. Delay in action by authorities leading to release of bank account from seizure.

Analysis:

1. The matter involves the seizure of amounts in the petitioner's bank account by the Enforcement Directorate since February 2016. The Court noted that the action was initially taken by the Directorate of Revenue Intelligence and raised queries regarding the legality of the seizure and the proper exercise of power in this regard.

2. The Court questioned whether the power to seize goods, including currency and negotiable instruments, was being exercised by the proper officer under Section 110 of the Customs Act. It sought clarification on whether the Directorate of Revenue Intelligence or the Enforcement Directorate had the authority to carry out such actions.

3. There was a transfer of the investigation from the Directorate of Revenue Intelligence to the Enforcement Directorate. The Court expressed displeasure at the lack of prompt and expeditious action by the authorities involved, leading to a delay of more than two years without setting the law in motion. The Court indicated a possible inclination to release the bank account from seizure if such delays persisted.

4. The Court warned that if any collusive acts were discovered, it would not hesitate to summon the Secretary in the Ministry of Finance, Department of Revenue, Government of India, to address the issue. The matter was adjourned to 27th March 2018 for further proceedings and to be placed on the Supplementary Board for additional review.